TSXV:XAG PE PEG Gauge Feb 19th 18
The metals and mining sector’s PE is currently hovering around 10.94x, below the broader Canadian stock market PE of 16.28x. This means the industry, on average, is relatively undervalued compared to the wider market – a potential mispricing opportunity here! Though, the industry returned a similar 7.31% on equities compared to the market’s 9.22%. Since Xtierra’s earnings doesn’t seem to reflect its true value, its PE ratio isn’t very useful. A loose alternative to gauge Xtierra’s value is to assume the stock should be relatively in-line with its industry.
Next Steps:
Xtierra has been a metals and mining industry laggard in the past year. If Xtierra has been on your watchlist for a while, now may be a good time to dig deeper into the stock. Although it delivered lower growth relative to its materials peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation. However, before you make a decision on the stock, I suggest you look at Xtierra’s fundamentals in order to build a holistic investment thesis.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.